"Lionel Says" - Beware Scaremongering About Local Income Tax (Esher and Walton Liberal Democrats)

Esher and Walton Liberal Democrats <info@esherandwaltonlibdems.org.uk>

"Lionel Says" - Beware Scaremongering About Local Income Tax

April 26, 2010 10:52 AM

Lionel Blackman Dear Sir,

If a local income tax were introduced in Surrey it would replace the Council Tax. What is uncertain is the extent to which it would replace the central government grants to Surrey County Council, Elmbridge Borough Council and Surrey Police. Grants that make up altogether more than 50% of these authorities' combined revenue requirements.

No one is going to charged twice for the same services. So if local income tax rises to replace central government grant wholly or in part then national income tax will go down a corresponding amount. The equation has to lead to a zero net change to the average taxpayer's tax burden; but one that is distributed more fairly according to ability to pay.

So when it is rumoured that a local income tax would lead to rises for the average council tax payer of £2500 this is errant nonsense and highly misleading.

A local income tax would not be introduced nationwide until pilots of the new taxation system were successfully piloted in authorities wishing to adopt it.

The idea of local income tax is not just to establish a fairer tax - so, for example, an elderly person residing alone in the old family home is not penalised, but to reduce dependency on the central government grant and thus give greater autonomy to local government.

Lionel Blackman

Liberal Democrat Candidate for Esher & Walton